Procedures for Computing Equilibria of the Oligopoly Expansion Game Under Predetermined Multi-Period Pricings, Part II: Second-Lowest Marginal-Cost Pricing.

A two-stage game is used in this paper to model a long-run market with spatially separated producers and with multi-period demands: first, firmas simultaneously and independently invest their capacities; second, after capacities are set up in the first stage and made public, firms engage in a short-run price competition, and the second lowest marginal cost is assumed to be the equilibrium price of the competition.

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Year of publication:	1996
Authors:	Wei, J.Y. ; Smeers, Y.
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	GENERAL EQUILIBRIUM \| GAMES \| PRICES \| OLIGOPOLIES \| COSTS

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Series:	Papers.
Type of publication:	Book / Working Paper
Notes:	27 pages
Classification:	C68 - Computable General Equilibrium Models ; C70 - Game Theory and Bargaining Theory. General ; C79 - Game Theory and Bargaining Theory. Other ; L10 - Market Structure, Firm Strategy, and Market Performance. General ; L13 - Oligopoly and Other Imperfect Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005779442